Mando Corporation_Business Report FY2008
Business Highlights
Highlights in FY2008 (ended Dec. 2008)
Acquisition
Halla Engineering & Construction Corp. of Korea announced that it will acquire all the shares (a 72.39 percent stake) that Sunsage B.V., a U.S. investment bank, owns in Mando Corporation for 651,546.77 million won. After finalizing the deal, Halla plans to form a consortium with other companies, which are willing to take a stake in Mando. The share-capital ratio of each member company is to be determined later. The Halla Group owned Mando until Sunsage bought Mando in 1999, making it nine years since Mando had been part of the Halla Group. (From a press release on Jan. 21, 2008)
Contracts
The Company was awarded a contract from GM to supply drum brakes. Over the period of two years starting from April 2008, its Harbin facility will supply drum brakes to two of GM's facilities, namely the one in Lordstown, Ohio, U.S.A. and also the one in Ramos Arizpe, Mexico. These drum brakes will be installed on the Chevy Cobalt and Chevy HHR. The new supply award is expected to generate 33 million U.S. dollars in sales. In preparation for the new business, the Company has already completed a project to expand its production capacity of drum brakes to 420,000 units per year. (From an announcement made by the company in May 2008)
Subsidiaries
-Halla Stackpole Co., Ltd.
The Halla Group, which is the parent organization of Mando Corporation, announced that the Group and Canada-based Stackpole Ltd. have jointly established Halla Stackpole. A new production facility will be built on 40,000 square meters of land in the Ochang Scientific Industrial Complex, Chungcheongbuk-do. Construction work, which is scheduled to begin in Apr. 2008, is planned to be completed in Sep. the same year. The new plant will house operations to produce automotive products such as transmissions, engine carriers, backing plates, and speed sensors. Halla Stackpole is capitalized at 37.2 billion won, of which 49 percent (18.2 billion won) was invested by Engineering & Construction Corp. ; 30 percent (11.2 billion) by Stackpole ; and 21 percent (7.8 billion won) by Halla Concrete Corp. (From a press release on Mar. 25, 2008)
Halla Engineering & Construction Corp. will transfer the entire 49 percent shareholding it holds in Halla Stackpole Co., Ltd. to Mando Corporation in the Halla Group. Mando will pay 19,638 million won for the transaction. (From a press release on Nov. 26, 2008)
-Mando-Hella Electronics Corp.
The Company and Hella KGaA Hueck & Co. of Germany have signed an agreement to establish Mando-Hella Electronics Corp., a 50-50 joint-venture company to manufacture driver assistance systems in Korea. Mando-Hella Electronics will be capitalized at 65 billion won. The construction project is scheduled to begin in early 2009 and end by July the same year. The new facility will produce driver assistance systems such as adaptive cruise control (ACC) systems, intelligent parking assistance (IPA) systems, and lane keeping assistance (LKA) systems. (From a press release on Oct. 17, 2008)
| Financial Overview | (in millions of won) |
| - | FY2008 | FY2007 | Rate of change |
| Sales | 1,574,800 | 1,674,378 | (5.9%) |
| Operating income | 24,829 | 68,736 | (63.9%) |
| Net income | 41,272 | 121,976 | (66.2%) |
| Sales by Business Division | (in millions of won) |
| - | FY2008 | FY2007 | Rate of change | ||
| Sales | % | Sales | % | ||
| Brake | 723,831 | 45.9% | 845,621 | 50.5% | (14.4%) |
| Steering | 574,057 | 36.5% | 527,124 | 31.5% | 8.9% |
| Suspension | 229,659 | 14.6% | 242,905 | 14.5% | (5.5%) |
| Others | 47,253 | 3.0% | 58,728 | 3.5% | (19.5%) |
| Total | 1,574,800 | 100.0% | 1,674,378 | 100.0% | (5.9%) |
Acquisition
Halla Engineering & Construction Corp. of Korea announced that it will acquire all the shares (a 72.39 percent stake) that Sunsage B.V., a U.S. investment bank, owns in Mando Corporation for 651,546.77 million won. After finalizing the deal, Halla plans to form a consortium with other companies, which are willing to take a stake in Mando. The share-capital ratio of each member company is to be determined later. The Halla Group owned Mando until Sunsage bought Mando in 1999, making it nine years since Mando had been part of the Halla Group. (From a press release on Jan. 21, 2008)
Contracts
The Company was awarded a contract from GM to supply drum brakes. Over the period of two years starting from April 2008, its Harbin facility will supply drum brakes to two of GM's facilities, namely the one in Lordstown, Ohio, U.S.A. and also the one in Ramos Arizpe, Mexico. These drum brakes will be installed on the Chevy Cobalt and Chevy HHR. The new supply award is expected to generate 33 million U.S. dollars in sales. In preparation for the new business, the Company has already completed a project to expand its production capacity of drum brakes to 420,000 units per year. (From an announcement made by the company in May 2008)
Subsidiaries
-Halla Stackpole Co., Ltd.
The Halla Group, which is the parent organization of Mando Corporation, announced that the Group and Canada-based Stackpole Ltd. have jointly established Halla Stackpole. A new production facility will be built on 40,000 square meters of land in the Ochang Scientific Industrial Complex, Chungcheongbuk-do. Construction work, which is scheduled to begin in Apr. 2008, is planned to be completed in Sep. the same year. The new plant will house operations to produce automotive products such as transmissions, engine carriers, backing plates, and speed sensors. Halla Stackpole is capitalized at 37.2 billion won, of which 49 percent (18.2 billion won) was invested by Engineering & Construction Corp. ; 30 percent (11.2 billion) by Stackpole ; and 21 percent (7.8 billion won) by Halla Concrete Corp. (From a press release on Mar. 25, 2008)
Halla Engineering & Construction Corp. will transfer the entire 49 percent shareholding it holds in Halla Stackpole Co., Ltd. to Mando Corporation in the Halla Group. Mando will pay 19,638 million won for the transaction. (From a press release on Nov. 26, 2008)
-Mando-Hella Electronics Corp.
The Company and Hella KGaA Hueck & Co. of Germany have signed an agreement to establish Mando-Hella Electronics Corp., a 50-50 joint-venture company to manufacture driver assistance systems in Korea. Mando-Hella Electronics will be capitalized at 65 billion won. The construction project is scheduled to begin in early 2009 and end by July the same year. The new facility will produce driver assistance systems such as adaptive cruise control (ACC) systems, intelligent parking assistance (IPA) systems, and lane keeping assistance (LKA) systems. (From a press release on Oct. 17, 2008)
R&D
R&D structure
-The Company established Mando (Beijing) Automotive Components R&D Center Co.,Ltd. in Beijing, China in June, 2006. It also conducts development activities at Mando R&D Shanghai Branch in Shanghai, China.
| Facility | Location | Area of development |
| Giheung System Research Center |
Yong-in, Gyeonggi-do |
- Countermeasure for hybrid technology - Development of integrated safety system - Development of driver support system - Development of key electronics technology |
| Pyeongtaek Testing & Evaluation Center | Pyeongtaek, Gyeonggi-do |
- Development of vehicle and rig test/evaluation technology - Development of materials - NVH (Noise & Vibration, Harshness) - Manufacturing techniques - CMMI |
-The Company established Mando (Beijing) Automotive Components R&D Center Co.,Ltd. in Beijing, China in June, 2006. It also conducts development activities at Mando R&D Shanghai Branch in Shanghai, China.